APSRTC CCS Loan Information
APSRTC CCS or also known as Andhra Pradesh State Road Transport Corporation Employees’ Thrift and Credit Co-operative Society is a credit society. APSRTC CCS Loan aims to provide its members with loans with very low-interest rates that can be used for a variety of things including repairs, house building and even vacations.
APSRTC CCS is a long-running credit society and now has become one of the biggest in the state and in here we will be exploring the ins and outs of the APSRTC CCS Loan system.
Short-Term Loan and Eligibility
First, we have a short-term APSRTC CCS Loan. In order to get a short-term APSRTC CCS Loan members to have to complete at least one year of regular service in the corporation and one month of membership in the society.
Short-Term APSRTC CCS Loan Till 4 Years
A minimum amount which is equal to seven months of basic pay will be granted as part of the Short Term APSRTC CCS Loan until the completion of four years of membership.
Post 4 Years Short Term APSRTC CCS
After the completion of four years of membership, the loan will be granted by taking into consideration the length of service in the corporation. At present 100% of the basic pay is being considered for the sanction of loans.
Extra Info About Short-Term Loans
The short-term APSRTC CCS Loan is granted subject to a maximum of Rs.2,00,000/-. But, the members whose MRDF balance exceeds Rs.50,000/- can draw a loan up to 1.75 times his Thrift subject to other conditions. However, if the gross loan exceeds Rs. 60,000/- a member shall have in the MRDF account at least 40% of the amount of loan granted.
The shortfall amount of the required percentage will be recovered from the APSRTC CCS Loan granted and credited to the members of the MRDF account. The Borrower who had drawn the loan up to 9 months Basic Pay can repay the loan within 48 monthly instalments. Those who draw a loan of 10 to 15 months of Basic Pay can repay within 72 monthly instalments and those who draw a loan of more than 15 months of Basic Pay can repay within 84 monthly instalments.
Interest on short-term APSRTC CCS Loan is charged at 11% PA on monthly reducing balances. The member applying for an APSRTC CCS Loan shall furnish two valid sureties; every member can stand as a surety for 3 borrowers. The difference between the borrower’s basic pay and the sureties’ basic pay is allowed for up to Rs.1,500/-. In case, the surety’s basic pay is Rs.6,000/- and above, the above condition doesn’t apply to them. He may stand as surety to any three borrowers and one can apply for an inclusive loan on completion of 12 monthly instalments through salary bills.
Long-Term Loans and APSRTC CCS Loan Eligibility
A Member can apply for Long Term APSRTC CCS Loan after the completion of one month’s membership in the Society and one year of regular service in the Corporation, with the prior consent of the Unit Officer. The member should also have at least a sum equivalent to 3 years MRDF on his credit at the time of payment of the Long Term Loan. The shortfall shall be recovered from his Long Term APSRTC CCS Loan Payment.
The maximum amount of Long Term APSRTC CCS Loan is Rs.7.5 lakhs and is granted for the construction of a house/flat, purchase of ready built house/flat or extension/completion of construction of a house. The Long Term Loan is repaid on the basis of Equated Monthly Instalments (EMI) and the interest charged per annum is 9.5%, on a monthly reducing balance.
Documents Required for APSRTC CCS Loan
There are a number of documents that need to be submitted in order to receive a Long Term APSRTC CCS Loan. Those are as follows
- Copy of sale deed of the plot/house in proof of ownership.
- Also link documents for the past 12 years.
- Letter of approval of the house plan (Plan proceedings) issued by the authorities – 3 copies.
- Approved House plan – 3 copies.
- Non – encumbrance Certificate for the 16 years preceding the date of application (the entries related to all the transactions that took place during 16 years should be entered in the EC).
- Detailed estimates for the Construction of house/purchase of house/completion of house/extension of house duly certified by any licensed Engineer or Executive Engineer/ Executive Engineer of APSRTC – 3 Copies.
- The house/proposed house should be within the area of the Municipal Corporation or Municipality or major Panchayat or Mandal HQ. Or else it should be within a 30 km radius of the Bus Depot/Unit Office of APSRTC. A certificate to this effect is issued by the authorities of the Depot/Unit.
- Agreement of sale (wherein the description of the property, agreed on cost, Advance received, period of agreement etc
- Tax receipt for the tax paid for the current year.
- Certificate in the prescribed Performa issued by the APSRTC authorities having No objection for granting loan by the Society on II Charge.
- Any other documents and certificates as required by the Society.
Eligible Amount for Loans
- House Construction: Hundred times of Basic Pay as on the date of application or certified cost of Construction or Rs.7.50 Lakhs, whichever of this is lesser will be granted as Long Term Loan, subject to the other rules that govern the sanction of such loans. However, the loan amount will be granted after considering the minimum take-home salary as per the APSRTC take-home pay rules.
- Purchase of House/Flat: Hundred times of Basic pay, or the cost certified by the Engineer or Rs.7.50 lakhs, or the agreed value of a house, whichever amount is less will be granted as Long Term Loan subject to other rules. The age of the building should not exceed 20 years to get Long Term Loan for its purchase.
- Completion of House: The Members can draw Long Term Loan for the specific works on the 1st Charge, and if the Loan is drawn from APSRTC, on the 2nd Charge for Completion of unfinished works. The loan shall not be granted for the jobs for which the loan was already drawn from the Corporation.
- Long-Term Loan – Second Time: The Member is eligible twice in his service to draw Long Term Loan up to Rs.7.5 lakhs for the Construction of a House, Horizontal and Vertical expansion of a House, Purchase of Ready Built House/Flat in his name or for taking over Housing Loans drawn from other Banks/Financial Agencies.
Apart from the usual recoveries from basic pay, the borrowers can also repay part of the APSRTC CCS loan or the full amount in any multiples of Rs.100/-. This can be paid at any time either by cash or by demand draft and the amount will be accounted for immediately.
We hope with this you can easily manoeuvre through the process with ease the next time you plan on taking out a loan through the APSRTC CCS loan system. And we hope the information provided is clear and precise to you.